BURBANK, Calif. – Disney has officially taken full ownership of Hulu, concluding a nearly two-decade journey that began as a joint venture with NBC and Fox. The acquisition, finalized on Monday, marks a significant milestone in Disney’s strategic expansion into the streaming industry.
Immediate Impact
Disney’s acquisition of Hulu involved an additional payment of $438.7 million to Comcast’s NBCUniversal, supplementing the $8.6 billion committed earlier in 2023. This transaction is part of a put/call arrangement established in 2019, which also saw Disney’s massive $71.3 billion acquisition of most of 21st Century Fox.
Key Details Emerge
While Disney had operational control over Hulu, Comcast retained a one-third financial stake pending negotiations on the final price. A floor value of $27.5 billion was set, but appraisals varied significantly. Disney’s valuation was below this threshold, whereas NBCU’s was “substantially” higher, as noted in a recent SEC filing.
“The transaction, completed Monday, takes into account the valuation of a third appraiser,” Disney explained in the filing.
Industry Response
Disney CEO Bob Iger expressed satisfaction with the resolution, stating, “We are pleased this is finally resolved. Completing the Hulu acquisition paves the way for a deeper integration of Hulu’s content with Disney+ and ESPN’s direct-to-consumer product.”
Comcast acknowledged Hulu’s impact, stating, “Hulu was a great start for us in streaming that generated nearly $10 billion in proceeds for Comcast.”
By the Numbers
- $438.7 million additional payment by Disney to Comcast
- $8.6 billion initial commitment in 2023
- $71.3 billion acquisition of 21st Century Fox
- $27.5 billion floor value set for Hulu
Background Context
Hulu’s journey began in the pre-smartphone era as a collaborative effort among NBC, Fox, and later Disney. Despite internal conflicts and shifting strategies, Hulu remained a pioneer in the streaming industry. The current consolidation reflects a broader trend as media giants navigate the evolving landscape of streaming versus traditional pay-TV.
What Comes Next
The buyout is expected to close on or before July 24, with Disney planning to further integrate Hulu’s offerings with its existing platforms. This move aims to enhance the value proposition for consumers by combining general entertainment with Disney+ and ESPN’s content.
As Disney solidifies its streaming strategy, the industry will be watching closely to see how this acquisition influences the competitive landscape and consumer offerings in the coming years.